GBP/USD Price Forecast – British pound finding buyers underneath
The British pound has shown a certain amount of resiliency during the trading session on Monday, as we had initially sold off, only to find buyers underneath. If that continues to be the case, we could be looking at three hammers in a row, which are sitting just below major resistance. That could be assigned that we are going to go much higher given enough time. Ultimately, that would obviously be a very bullish sign, and could send this market looking towards the 1.35 level, which is the next major psychological barrier.
GBP/USD Video 19.03.19
Keep in mind that there is always the occasional Brexit headline that will come out and put pressure on Sterling, but at the same time we have news coming out of the Federal Reserve this week that could give us an idea as to whether the central bank is going to raise interest rates at all during 2019, which is a major driver of where the greenback’s going to go next. It appears that most market participants on Monday are banking on dovish in his coming out of Washington DC, and therefore it also appears that most people are paying attention to that when it comes to cable more than anything else, at least at the moment.
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To the downside, if we break the 1.32 handle, we could drop to the 1.30 level where I would expect to see even more support. That being said, the 1.30 level would be an excellent area to see buyers coming back in, as it has been important more than once.
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